Why HR is critical for SME?
  • Professional Recruitment

Why HR is critical for SME?

Updated: May 11, 2019



Majority of Start up & Small, Medium Enterprises (SME) doesn't consider HR is an important function in their organization.

 They spend most of times focusing on Sales, marketing, and strategy. Some of them include accounting & finance, it always good to know where are you standing from a financial point of view. 


I would agree all functions, sales, marketing, strategy, & finance are important but HR is also another important function. Actually, I always advise start up that HR is critical in the starting phase. 


All business in the world depend on assets, either you are in the product line or the services line.


Assets are differing from an organization to another. Human are the most valuable assets, by the end of the day, human run machines, they create & innovate. Human are the main reason of your position in the market today.


 HR is more than recruitment or even managing attendance; HR is playing major roles in different areas.


Starting from Recruitment, nothing will be worst than wrong hiring. Selection is critical especially if you have limited positions in your organization. Compensation & benefits another frustration factor for your employees, do you have the right structure?Training, it is the gap between what the employee do & what they should do. Do you know how to do training need analysis ?! Do you know how to do on the Job training?!


These are couple of examples to let you think & consider the importance of HR..


 HR is a full function where you need to pay attention, here is some examples of HR functions: Succession plans, organization Development. Employee relation, motivation, building organization culture, organization values, compensation & benefits, career path, employee turn over, training, job descriptions, performance management, management style, leadership... Etc. 



All these areas within HR deserve an attention along with other functions. Human are the one who is selling, doing marketing, human are running other functions that are important and keeping you in the business.

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